“Pay righteous for sinners”
“Pay righteous for sinners” A few years ago I saw a documentary that reflected the rural lifestyle in Okinawa, Japan. The host accompanies the interviewee to shop at a small vegetable store in the village in question. All the vegetables were very well placed and there was no one on the premises. Each person took the products that interested him, weighed them, and deposited the money in a drawer.
The presenter, surprised, asked: – Are there no surveillance cameras? –.
The interviewee replied –“No”– and added, –There is no one, the peasant owner is taking care of the land–.
– So, can you take what you want, without paying? – insisted the presenter.
“Sure,” replied the interviewee. –It will happen that, when the farmer sees that this method is no longer profitable, he will bring a guard, he will put some surveillance cameras, a cash register, and a cashier. Therefore, he will raise the price of the vegetables that we now buy so cheaply.
Something similar is happening to us with homeowners insurance in Florida, whose prices have increased more than in any other state. Last year, the rise averaged 30%. According to specialists, it is because, in 2020, the insurance industry lost some 1,600 million dollars. In 2021 alone, there were 95,000 lawsuits related to home insurance.
In that same period, in the rest of the states, these demands did not reach 1,000.
As we have discussed on other occasions, the business of insurers is to buy risk. To do this, they study each hazard and calculate the probabilities of their occurrence.
The most simplified formula to understand it is: the higher the risk, the more expensive the policy. Apparently, in Florida we have gotten out of hand making lawsuits, some not so honest, so many insurers have left the state and those that remain have raised their prices. In short, as my grandmother used to say: “We pay just for sinners”.
To try to rein in this trend, SB-1728 seeks to ban some ads that call for public contractors or adjusters to be contacted for the purpose of making an insurance claim for roof damage. This proposition considers it fraud for a contractor to pay a policy deductible in exchange for performing repairs on a covered property. It will also be attempted to make it a felony to make a claim with false, incomplete, or misleading information.
Homeowners have a responsibility to maintain our roof. If a leak occurs, we must fix it in time. If the roof is old, more than 20 years old, our responsibility is to schedule its replacement. Doing the opposite is looking for the peasant to put surveillance cameras, a cashier and therefore we end up paying more. “Pay righteous for sinners”
At Univista Insurance, you can find the cheapest home insurance in the state.